1. Field of the Invention
The present invention relates to a computer program product, comprising a computer usable medium having a computer readable program code embodied therein, said computer readable program code adapted to be executed to implement a method that enhances accuracy in enterprise accounting by performing account analysis through a determining the accuracy of ledger accounts and measuring of financial statement accuracy using novel accounting reconciliation methods.
2. Description of Related Art
Account reconciliation is an accounting process utilized to verify the accuracy of a ledger account balance and its accounting entries. Account reconciliation involves a post-fact inspection process because the accounting events have already happened. Account reconciliation enables the finance area to manage any outstanding items. The outstanding items are accounting entries that currently compose the ledger account balance. In order to control the outstanding items, account reconciliation uses a reconciliation sheet to provide a detailed analysis of all accounting entries that are part of a ledger account. The process follows with corrective actions for the inconsistencies detected by the detailed analysis and it circles back to the detailed analysis to verify the completion of the corrective actions and if there are remaining inconsistencies.
Accounting entries affect the ledger account balance through the posting process, which is the only accounting mechanism that is entitled to do so. Therefore, the accuracy of a ledger account has a direct relationship to the accuracy of its outstanding items, which are the accounting entries that compose its balance. An accounting transaction to be conclusive and accurately registered in a ledger account must comply with the following key attributes. If any of these attributes do not stay, the accounting transaction is neither conclusive nor accurate.                Belonging        Unequivocal identification        Atomicity        No Sharable        